A company uses process costing and provides the following information for the month of August: Physical Flow in August Cost Data for August Units in Process, Aug. 1 100 Materials Conversion Total Units Started in August 1100 Beg. WIP: $734 $1,547 $2,281 Units Completed in August 1120 Current Period: 12,708 $13,897 $26,605 Units in Process, Aug. 30 80 Total: $13,442 $15,444 $28,886 Units in process at the end of August were 30% complete with respect to materials and conversion costs. How much cost should be assigned to ending work-in-process inventory for the month of August? (Round all intermediate calculations and the final answer to the nearest dollar and cents.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
1) A company uses
How much cost should be assigned to ending work-in-process inventory for the month of August? (Round all intermediate calculations and the final answer to the nearest dollar and cents.)
2)
A company uses process costing. The following information pertains to the Assembly Department for the month of June:
Assembly Department physical inventory for June:
100 units completed and transferred out
20 units in ending work‐in‐process inventory
Ending work-in-process inventory is 10% complete with respect to materials costs and 40% complete with respect to conversion costs.
Assembly Department cost information for June:
Beginning work-in-process costs:
Materials: $2,242
Conversion: $16,092
Costs added during June:
Materials: $50,435
Conversion: $200,235
What is the Assembly Department's cost per equivalent unit for conversion costs for the month of June? (Round all calculations to the nearest dollar and cents.)
3)
A company uses process costing. The following information pertains to the month of September:
Cost per equivalent unit calculations for September:
Cost per equivalent unit for materials costs: $2.05
Cost per equivalent unit for conversion costs: $8.13
Physical inventory, September:
4,000 units in beginning work‐in‐process inventory
10,000 units started
12,000 units completed
2,000 units in ending work‐in‐process inventory
Ending Work-In-Process inventory is 32% complete with respect to materials costs and 41% complete with respect to conversion costs.
How much cost should be assigned to ending finished goods inventory for the month of September? (Round all calculations to the nearest dollar and cents.)
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